Tutorial #1 with answers

Tutorial #1 with answers - Summer 2003 MBA 501-01 Economics...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Summer 2003 MBA 501-01 Economics Survey Tong Tutorial #1 Multiple Choice Questions (One point each) Identify the letter of choice that best completes the statement or answers the question. 1. The optimal or allocatively efficient point on a production possibilities curve is achieved where: A) the smallest physical amounts of inputs are used to produce each good. B) each good is produced at a level where marginal benefits equal marginal costs. C) large amounts of capital goods are produced relative to consumer goods. D) large amounts of consumer goods are produced relative to capital goods. 2. The concept of opportunity cost: A) is irrelevant in socialistic economies because of central planning. B) suggests that the use of resources in any particular line of production means that alternative outputs must be forgone. C) is irrelevant if the production possibilities curve is shifting to the right. D) suggests that insatiable wants can be fulfilled. 3. In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of: A) scarcity and opportunity costs. B) money and real capital. C) complementary economic goals. D) full production. 4. The simple circular flow model shows that: A) households are on the buying side of both product and resource markets. B) businesses are on the selling side of both product and resource markets. C) households are on the selling side of the resource market and on the buying side of the product market. D) businesses are on the buying side of the product market and on the selling side of the resource market. Page 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Use the following to answer question 5: 5. Refer to the above diagram. An improvement in technology will: A) shift the production possibilities curve from PP 1 to PP 2 . B) shift the production possibilities curve from PP 2 to PP 1 . C) move the economy from A to C along PP 1 . D) move the economy from A , B , or C on PP 1 to D . 6. Which of the following is assumed in constructing a typical production possibilities curve? A) the economy is using its resources inefficiently. B) resources are perfectly shiftable among alternative uses. C) production technology is fixed. D) the economy is engaging in international trade. 7. A country can achieve some combination of goods outside its production possibilities curve by: A) idling some of its resources. B) specializing and engaging in international trade.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 10

Tutorial #1 with answers - Summer 2003 MBA 501-01 Economics...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online